{"id":9518,"date":"2014-09-10T13:53:32","date_gmt":"2014-09-10T17:53:32","guid":{"rendered":"http:\/\/mjtsai.com\/blog\/?p=9518"},"modified":"2014-09-13T17:54:37","modified_gmt":"2014-09-13T21:54:37","slug":"apple-pay","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2014\/09\/10\/apple-pay\/","title":{"rendered":"Apple Pay"},"content":{"rendered":"

Apple<\/a>:<\/p>\n

Gone are the days of searching for your wallet. The wasted moments finding the right card. The swiping and waiting. Now payments happen with a single touch.<\/p>\n

Apple Pay will change how you pay with breakthrough contactless payment technology and unique security features built right into the devices you have with you every day. So you can use your iPhone 6 or Apple Watch to pay in an easy, secure, and private way.<\/p><\/blockquote>\n

As a wallet replacement, I don’t really see the attraction. If it’s not ubiquitous, I’ll still have to carry my cards. I’ll need my driver’s license in any case. Even if everyone accepted Apple Pay, I wouldn’t want to leave home with all my eggs in one breakable basket. I’m not convinced that Passbook and NFC are easier than using a card.<\/p>\n

But the potential for purchasing from third-party stores, within an app<\/a>, is very promising:<\/p>\n

Convenient checkout. On iPhone, you can also use Apple Pay to pay with a single touch in apps. Checking out is as easy as selecting “Apple Pay” and placing your finger on Touch ID.<\/p><\/blockquote>\n

Too bad it isn’t available on Macs or older iPhones.<\/p>\n

Clover<\/a>:<\/p>\n

Apple Pay marks the first time a popular operating system is making payments a platform service for real-world, non-digital-good transactions, in a broad, inclusive manner that is compatible with the mainstream payments processing industry. At Clover we’re particularly excited because we believe it opens up lightweight apps that can interact and transact with small-and-medium brick-and-mortar restaurants. By lightweight, I mean that these apps won’t need to maintain a user database, require user logins, worry about getting cards on file, or being an unwilling payment aggregator. i.e., it will be at least 10x easier. I expect a huge amount of innovation in real-world mobile commerce as a result over the coming years because of the revolution that Apple Pay is starting.<\/p><\/blockquote>\n

Marko Karppinen<\/a>:<\/p>\n

Apple Pay comes with the key benefits of IAP: frictionless transactions, strong privacy protections for the consumer, and a user base that will soon number in the millions. It is backed, in part, by those same credit cards on file at iTunes.<\/p>\n

The big difference is that Apple doesn’t charge anybody anything for the use of Apple Pay<\/strong>. That’s because Apple sees Apple Pay as an end-user feature of iPhone 6, not as an independent revenue source. (Update: According to Bloomberg<\/a>, Apple is charging banks. But that is coming from the fees paid to<\/em> banks by merchants, so the thesis about this being free for both merchants and customers still stands.)<\/p>\n<\/blockquote>\n

The comparison with In-App Purchase is interesting:<\/p>\n

A newspaper’s iOS app can sell print subscriptions using Apple Pay, get all the conversion benefits of the one-tap payment, and pay 2.9% (to Stripe or some other credit card processor) for the transaction. But if the paper offers the same content digitally, within the same app, Apple will charge 30% in IAP commission.<\/p>\n

[…]<\/p>\n

Apple’s overall business would be well served by dismantling of the IAP monopoly on iOS and allowing Apple Pay to be used for the payment of in-app goods and services.<\/p><\/blockquote>\n

DCKing<\/a>:<\/p>\n

So Apple Pay is a payment method management<\/i> application. It is not a payment protocol. The payment protocol Apple Pay uses to interface with point of sale terminals is the same EMV protocol that is used for other solutions.<\/p><\/blockquote>\n

Update (2014-09-13): Rich Mogull<\/a>:<\/p>\n

Tokenization is great because it reduces or eliminates the need to update legacy systems that expect a credit card number, without ever exposing the real number. Tokenization is typically handled by the payment network, which (in some implementations) encrypts the credit card number right when you swipe it, sends it back for the token, and then provides that to the merchant to keep for things like refunds or customer tracking. If the merchant’s system is breached, no real numbers are exposed; the tokens can also be merchant-specific for any given credit card, making them useless anywhere else.<\/p>\n

[…]<\/p>\n

Using per-device tokens means that only the bank that issued the card (or its payment network) ever has your card: You don’t have to trust Apple with it.<\/em> This is different from the Google Wallet system, in which Google holds your cards on their servers.<\/p>\n

[…]<\/p>\n

Apple is in a unique position due to its business model. It doesn’t want or need to track transactions. It doesn’t want or need to be the payment processor. It isn’t restricted by carrier agreements, since it fully controls the hardware.<\/p><\/blockquote>","protected":false},"excerpt":{"rendered":"

Apple: Gone are the days of searching for your wallet. The wasted moments finding the right card. The swiping and waiting. Now payments happen with a single touch. Apple Pay will change how you pay with breakthrough contactless payment technology and unique security features built right into the devices you have with you every day. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"","apple_news_api_id":"","apple_news_api_modified_at":"","apple_news_api_revision":"","apple_news_api_share_url":"","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":"\"\"","apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[2],"tags":[995,992,101,522,31,85,996,573],"class_list":["post-9518","post","type-post","status-publish","format-standard","hentry","category-technology","tag-apple-pay","tag-apple-watch","tag-business","tag-inapppurchase","tag-ios","tag-iphone","tag-iphone-6","tag-touch-id"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/9518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/comments?post=9518"}],"version-history":[{"count":4,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/9518\/revisions"}],"predecessor-version":[{"id":9580,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/9518\/revisions\/9580"}],"wp:attachment":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/media?parent=9518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/categories?post=9518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/tags?post=9518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}